After Black Monday 2008-style came Turnaround Tuesday. Although in truth, compared with Monday's 777.7 point-fall on Wall Street and 269.7-point decline in London, it was not much of a recovery.

The FTSE 100 climbed 83.7 points to 4902.5, helped by a resurgence among miners and a rise of about 250 points on Wall Street by the time London closed. Part of the revival was due to a growing hope the US treasury's $700bn (£385bn) bank bail-out plan could yet be saved this week, albeit with some tweaking.

On top of that came talk that the US Federal Reserve might sanction an emergency interest rate cut before its next scheduled meeting at the end of this month, perhaps as part of a concerted effort with other central banks including the Bank of England and the European Central Bank. Investors chose to ignore news that overnight dollar Libor - the rate at which banks lend to each other - had more than doubled, another sign of how frozen the money markets have become.

Among miners, Xstrata added 138p to £17.16 ahead of tomorrow's deadline for it to firm up a proposed £33-a-share offer for platinum specialist Lonmin, up 166p to £22.74p. Many in the City believe Xstrata is likely to press ahead with the deal, despite the market turmoil. If it walks away, Lonmin's shares are likely to plunge.

Chilean copper miner Antofagasta rose 4.25p to 400p as Citigroup repeated its buy recommendation but cut its target from 800p to 600p to reflect a reduction in its copper price forecasts.

Most of the banks recovered from their worst levels, ahead of news on whether the US banking bail-out could be resurrected. The main exception was HBOS, down 19.6p to 122.4p on talk that Lloyds TSB may water down the terms of its offer for the mortgage bank. Lloyds added 9.25p to 226.5p, valuing each HBOS share at around 188p.

Icap, the inter-dealer broker, was the biggest faller on Monday and the biggest gainer yesterday.

The company, which benefits from market volatility, added 65.75p to 355p as house broker Merrill Lynch said the shares had been oversold and issued a buy recommendation. Merrill was also positive on hedge fund manager Man Group, up 31.25p to 336.75p.

Supermarket group Tesco climbed 17.7p to 387.6p after reassuring half-year figures, but Marks & Spencer dropped 6.75p to 201.5p on continuing fears of a poor trading statement tomorrow. A year ago M&S stood at 567p.

Telecoms group Cable & Wireless climbed 5.2p to 165.5p after Citigroup issued a buy note and raised its target from 240p to 250p. On Aim, marketing group Delling jumped 28% to 1.75p after reporting half-year profits had more than doubled to £700,000.

'Here comes the rub: in a sustained downturn, the prospect of Marston's and Greene King merging to take out costs could rise up the agenda again'